Arzani has joined Eredivisie side FC Utrecht on loan after two horror years in Scotland.
van 't Schip, who gave Arzani his debut at Melbourne City in 2016, says he tried to get him to go to the Netherlands earlier in his career.
"I don't think it was a very good move for him going to Celtic," van 't Schip told the Scottish Daily Record.
"The reason I say that is because of the standard of football in Scotland.
"He should have come to the Netherlands. I tipped off Ajax about him, but they already had young players in his position.
"And I tried to sign him when I was PEC Zwolle manager, but he chose to go to Celtic.
"He is potentially a very, very good player, but he barely played at all in Scotland.
"Utrecht needs to give him time because he hasn't played properly for a very long time."
Arzani has failed to start a game in two seasons.
